Baufest

Innovating with a Customer-Centric Focus

In the third edition of Baufest to Business Talks—our interview series featuring leaders from major Latin American companies—we spoke with Álvaro Rojas Miró Quesada, Managing Director of Innovation and New Business Platforms at Alicorp in Peru.

Innovating with a Customer-Centric Focus

He shared how innovation is developed within a leading consumer goods company and how operations adapted to customer needs during the 2020 pandemic context.

"The first paradigm we wanted to break is that innovation must necessarily involve a new product," explained the Alicorp executive. "We believe innovation can also be tied to a service or an experience, or even the modification of an internal process. When we talk about innovation, we refer to our ability to identify pain points and unmet experiences, both for our clients and consumers and for our own people. The team I am fortunate to lead helps us focus not on what will bring in revenue today, but on what will likely drive revenue in the medium and long term."

When asked about the tools, processes, and methodologies they had to adopt, as well as the cultural shifts required to begin thinking about innovation in this way, Rojas Miró Quesada shared: "We realized that while our culture and innovation process were strong and had driven our success up to that point, we needed to bring new tools into the organization. So, we defined two major concepts. The first was customer centricity—ensuring the customer is not just a part of, but at the very center of, every decision. Second, we recognized that we lacked some of the capabilities needed to achieve this, so we went out to acquire them. That is how we began using the Design Thinking methodology."

According to Rojas Miró Quesada, this customer-centric approach delivered two major outcomes: "On one hand, it shifted our mindset around how we iterate and interact with our clients or consumers. Previously, we would create a design and present it to the user or consumer for validation. Now, we share our designs to learn from what they tell us, gather their feedback, and based on that, refine, correct, or completely pivot those designs. On the other hand, this new focus allowed us to build genuine empathy."

Navigating the Pandemic

Regarding the coronavirus pandemic and its impact, the Alicorp leader noted: "We quickly realized that we would have to adapt and learn new ways of doing things. One of our team mantras is that we must develop the ability to know what to do when we don't know what to do. With that mindset, we challenged ourselves. One of our main hurdles during the initial months was that our need to stay close to consumers, interact with them, and build empathy was heavily tested by the pandemic (since face-to-face, in-depth interviews were no longer viable, for example). In that sense, I can say we broke many paradigms, and technology supported us in ways we hadn't imagined."

Among the opportunities that emerged during such a complex year, Rojas Miró Quesada highlighted "the acceleration of digital channels in product purchasing. We had already seen this in retail companies and brands with direct-to-consumer models as a result of their digital transformation. However, as a primary consumer goods company, we manage various links in the supply chain and lacked that direct connection. So, on one hand, there was an opportunity to see how we could get closer to consumers when they needed it most—since our products were essential goods (detergents, soap, antibacterial solutions, chocolates, cooking oils, pasta, cookies, etc.) that needed to reach customers so they could stay safe at home," explained Rojas Miró Quesada.

He added: "Our partners—market stalls, mom-and-pop shops, restaurants, bakeries—also needed our support, as they were going through a very difficult situation and struggling to keep their businesses alive. From there, we shifted from a transactional relationship ('I sell you my product so you can sell it to an end user') to a consultative approach. We began helping them implement delivery systems, for example. Additionally, we developed new products to meet emerging needs that weren't as prominent before (such as household, clothing, or footwear disinfection processes) or for which existing products were not originally designed."

Data and Intuition

Alicorp is a data-driven company that leverages analytics to better understand consumers. This strategy is an integral part of its customer-centric focus: "We believe that making data-driven decisions is crucial," emphasizes Rojas Miró Quesada. "However, in a crisis like the one we experienced, information must be paired with intuition. Why? Because there are times when data isn't enough; it can never be perfect, and while data provides a snapshot of what has already happened, it doesn't predict the future..."

Looking ahead, the Alicorp executive believes that "some consumer habits will likely return to pre-pandemic baselines, but changes made during those months will endure, or perhaps settle into a middle ground. For instance, something that really caught our attention was the surge in flour sales for baking at home, driven by people wanting to share moments with their children, have fun, and step away from screens. We believe this new habit will persist even after the pandemic is behind us... Handwashing is another example: a study we conducted during the pandemic showed that people began washing their hands between 14 and 20 times a day... Another lasting change is the openness to digital shopping: people realized that it works... That's why we believe the competitive landscape will be redrawn. The companies that emerge strongest will be those closest to their customers and consumers—understanding how they view the world, truly grasping their needs, and designing products and services around them."

We invite you to watch the full interview here.

If you'd like to explore other conversations from our Baufest to Business Talks series, you can subscribe to our Youtube channel.


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